Introduction

The Hydrogen and Fuel Cell (H, FC) and Carbon Abatement Technologies (CAT) Demonstration Scheme is designed to address two of the Government’s key energy priorities set out in the Energy White Paper: cost competitive carbon emissions reductions, and increased security of supply. The Government is committed to increasing the deployment of renewable energy in the UK , but it is inevitable that fossil fuels will continue to be used for many years to come, both here and abroad, with the rapidly growing energy demand of the developing countries representing a significant pressure.

Technologies that reduce the emission of pollutants and greenhouse gases would enable us to use these resources in a more sustainable way, giving us more time to develop the renewable and other low carbon resources which will be the key to our long term future.

The demonstration programme includes a number of technologies which, alone or in combination, have the potential to contribute to reduced carbon emissions while utilising fossil fuels. Some also have the capability to be deployed in conjunction with renewable energy sources. What they have in common is that they are relatively untried. Even without the further research and development which in many cases will be required in order to produce products which are fully competitive, the lack of field experience and real operating data with these technologies would constitute a barrier to deployment. It is that barrier which this scheme is designed to address.

BERR Energy Group support for the eligible technologies will be subject to EC State Aid Approval. Approval of specific projects and the level of funding will depend on a number of factors including the closeness to market of the technology.

The demonstration programme will be operated as a single programme because it is recognised that projects may well include a number of technologies, so a flexible approach will be essential. However, projects involving only a single technology will be eligible. Of the total overall budget of £50m is expected that £35m will be allocated for CAT and £15m for fuel cell and/or hydrogen technologies. The programme will run for 4 years.

The Hydrogen, Fuel Cell and Carbon Abatement Technologies Demonstration Programme is part of the UK Environmental Transformation Fund (ETF); a joint BERR/Defra fund to bring forward the demonstration and deployment of low carbon energy and energy efficiency technologies. Further information about the ETF is available from http://www.berr.gov.uk/energy/environment/etf/page41652.html or http://www.defra.gov.uk/environment/climatechange/uk/energy/fund.